Well lemmy.ml is run by pretty much the same people as lemmygrad. Before the Reddit drama .ml was filled with mostly the same kind of politics. They chose the .ml extension to signify Marxism-Leninism I believe. So it's not that surprising that some have blocked them.
But anyway, where does it lead? We're just in flux. Everyone is figuring everything out. Instances will stabilize. Norms will be established. Everything will be fine. Some pockets will get isolated, but I believe the vast majority will stay together. Once in a while there will be some drama, some splits and spats. It'll be fine, people will shift. Balance will return.